Compensation Glossary
Welcome to ERI SalaryExpert's compensation glossary, your resource for commonly used terms, formulas, and phrases related to compensation.
Return on Net Assets (RONA)
This is a way of measuring the overall earning power and or profitability of a company. It is the ration of the total assets (minus liabilities) to the net income. May be used as a measure for executive incentive plans.
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Hours of Work
Job Family
Job Evaluation
Pay Range Overlap
Gender Pay Gap
Long-Term Incentive Plan
Pay Equity
General Salary Increase
Market Pricing
Defined Contribution Plans
Demotion
Midpoint Progression
Total Rewards
Standard Deviation
Geographic Differential
FICA
Mode
Black-Scholes Model Z
Sales Compensation
Pay Grade
Lag the Market
Range
Salary Structure Change
Stock Option Incentive
Minimum Wage
Linear Regression
Benchmarking
Quartile
Cost of Living
Step Rates
Annual Incentive
Lead-Lag Pay Structure Policy
Turnover
Promotional Increase
Individual Retirement Account (IRA)
Shift Differentials
Compa-Ratio
Range Penetration
Defined Benefit Plans
Foreign Earned Income Exclusion
Broadbanding
Lead Pay Structure Policy
Merit Increase
Percentile
Market Based Salary Increase Budget
Benchmark Job
Works Council
Aging Survey Data
Compensable Factors
Salary Range
Mean
Internal Equity
Red Circle Rate
Market Index
Cost of Labor
Consumer Price Index (CPI)
Restricted Stock
Year of Service
Salary Grade
Standard Error of Estimate
Lump Sum Merit
Range Spread
Green Circle Rate
Coefficient of Determination
Bonus
Median
Mix
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ERI SalaryExpert was launched in 2000 by ERI Economic Research Institute to help organizations and individuals optimize salary planning. Our robust compensation management solution houses the global salary survey data and applications needed to design competitive and effective compensation structures. From benchmarking with reliable market data to analyzing geographic differentials and conducting pay equity analyses, our intelligent platform is an innovative way of merging integral salary survey data with efficient features, all in one system.
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Featured White Paper
Common Compensation Terms and Formulas - January 2026
Find commonly used compensation terms and formulas for your reference when planning compensation.
Ready to Streamline Your Compensation Strategy with Us?
Discover how our Assessor Platform can help you attract top talent, stay on top of market trends, and set your organization up for success, all in one platform.
Try a Free Demo
About Us
ERI SalaryExpert was launched in 2000 by ERI Economic Research Institute to help organizations and individuals optimize salary planning. Our robust compensation management solution houses the global salary survey data and applications needed to design competitive and effective compensation structures. From benchmarking with reliable market data to analyzing geographic differentials and conducting pay equity analyses, our intelligent platform is an innovative way of merging integral salary survey data with efficient features, all in one system.
Learn More